The future of artificial intelligence promises transformative advancements across various sectors as revolutionary technology augments human capabilities and drives innovation at levels not seen before. AI is already transforming the world of machines and diminishing the need for human interaction from healthcare to financial services, retail and industrial sectors.
Amid the advancements, the new US administration is rethinking the role the public sector should play in fueling and driving the future of artificial intelligence. Letting the private sector handle the development with minimal government interference and funding is emerging as Donald Trump’s administration policy, in stark contrast to Biden’s policies.
President Donald Trump has already hinted at eliminating the 2022 Chips and Science Act, which set $52 billion to help spur domestic semiconductor manufacturing and research. Instead, he has provided a framework and environment where companies invest billions of dollars to develop and run the AI infrastructure. That’s evident in the $500 billion Stargate project.
Additionally, Trump has surrounded himself with former and present venture capitalists who have advocated for less regulation of AI businesses, such as Vice President JD Vance and AI Czar David Sacks. The White House’s plan to lessen government funding and direction of AI development is a big risk that could endanger the US’s leadership in AI at a time when Trump has stated that outperforming China is a top priority.
“There is no private sector innovation without public sector research and development,” said Calendar Nelson, senior fellow at the Center for American Progress and former acting director of the White House Office of Science and Technology Policy. “Government-funded research creates the foundational knowledge that companies later build upon — from the internet and GPS to genomics and AI.”
Over the years, government spending on research and development has always acted as a key catalyst in driving innovation and growth. According to a Federal Reserve Bank of Dallas analysis, productivity increases dramatically when government research funding increases, producing long-lasting economic benefits that greatly exceed the initial investment.
On the other hand, China has adopted a very different tack from the US, which is debating the extent to which the public sector should finance advancements in AI innovation. Approximately 60% of all money entering China’s scientific and technology ecosystem comes from government-related sources, per a study published in late 2023 by the research firm Rhodium Group.
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11. Kingsoft Cloud Holdings Limited (NASDAQ:KC)
Number of Hedge Fund Holders: 12
Kingsoft Cloud Holdings Limited (NASDAQ:KC) is a software application company that offers integrated cloud-based services, including cloud computing, storage, and delivery. The company delivered better-than-expected results for the fourth quarter of 2024, with a 29.6% jump in revenue to $305.8 million. The increase came as the company recorded a 500% increase in AI cloud business gross billing.
Kingsoft Cloud Holdings Limited (NASDAQ:KC) posted its first-ever profit on adjusted operating profit, totaling $3.3 million, compared to an operating loss of $25.88 million a year ago. Revenue and earnings growth were driven by the increased contribution of the Xiaomi Kingsoft Ecosystem and AI-related customers. Additionally, Kingsoft Cloud’s offering recorded higher demand for its solutions as public cloud and enterprise cloud businesses harnessed the vast potential of AI cloud computing.
10. Tuya Inc. (NYSE:TUYA)
Number of Hedge Fund Holders: 13
Tuya Inc. (NYSE:TUYA), a leading global AI cloud platform provider, is transforming the smart home ecosystem by infusing technology with emotional intelligence, making it more than just functional.
On March 21, Tuya Inc. (NYSE:TUYA) announced a strategic partnership with DeepSeek to integrate its advanced AI model into Tuya’s AIoT platform, creating emotionally intelligent AI companions. This collaboration aims to transform devices like cleaning robots and smart photo frames into intuitive companions capable of understanding and responding to emotions using natural language processing, context modeling, and sentiment analysis. Proposed innovations include holographic projection companions, pet robots, emotional connection jewelry, and AI magic mirrors.
9. SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 27
SAP SE (NYSE:SAP) is a software company offering enterprise applications and AI solutions that help organizations run their businesses profitably. It also integrates AI into its solutions to enhance data analysis and optimize campaign performance. The company received a significant boost on March 20 after DataRobot, a provider of AI, strengthened its strategic partnership.
DataRobot has since launched AI applications for finance and supply chain operations, taking advantage of SAP SE’s (NYSE:SAP) business context. The solutions have been preconfigured for SAP solutions, empowering AI teams to deliver life-of-business AI solutions. The application suites ensure businesses obtain AI-driven insights within their current workflows by leveraging the rich business data found throughout the SAP solution landscape, including SAP S/4HANA and SAP Datasphere.
“Our expanded partnership with DataRobot will bring AI-powered insight apps to SAP customers across industries and lines of business—enabling them to rapidly adopt AI, enhance decision-making, optimize operations, and drive business transformation at scale. Together, we are empowering organizations across industries to accelerate AI adoption and achieve real business impact with enterprise-grade AI solutions,” said Irfan Khan, President and Chief Product Officer for SAP Data and Analytics.
8. Box Inc. (NYSE:BOX)
Number of Hedge Fund Holders: 39
Box Inc (NYSE:BOX) is a technology company that offers a cloud-based content management system that integrates collaboration, security, analytics, and other features related to files and information. It integrates advanced AI models into its content platform to help users drive business insights, create content quickly, and automate workflows. The company announced a strategic collaboration with DataBank on March 20 to revolutionize intelligent content management.
The two companies are joining forces to combine their best-in-class offerings to enhance the way organizations manage content. The companies will leverage their best-in-class offerings to deliver AI-powered solutions that streamline business processes like contract life cycle management and digital asset management. The partnership should benefit various sectors, including healthcare and financial services, allowing Box Inc (NYSE:BOX) to unlock new growth opportunities.
“In this AI-first era, businesses must modernize the way they manage their content and recognize the valuable insights inside of it,” said Olivia Nottebohm, Chief Operating Officer of Box. “This strategic partnership brings together Box’s ICM platform with DataBank’s deep expertise in process automation and data solutions to drive modern business processes, particularly for organizations in highly regulated industries who still rely on legacy systems and paper archives.”
7. Coherent Corp. (NYSE:COHR)
Number of Hedge Fund Holders: 71
Coherent Corp. (NYSE:COHR) is a technology company that develops, manufactures, and markets engineered materials, optoelectronic components, and optical and laser systems. The company is also driving innovation in AI and machine learning (ML) by providing high-speed datacom transceivers and optical components for AI data centres. On March 20, the leader in photonics unveiled a 2x400G-FR4 Lite optical transceiver designed explicitly for AI-driven data centers and high-speed Ethernet networks.
The transceiver can deliver a 500-meter reach while reducing power consumption, making it a perfect fit for high-volume deployments. The 2x400G-FR4 Lite is engineered to support the explosive growth of AI and ML workloads. Its competitive edge stems from lowering power consumption through silicon photonics integration.
“The 2x400G-FR4 Lite is built with silicon photonics, reinforcing our commitment to selecting the best technology for each application,” said Dr. Lee Xu, Executive Vice President, Datacom Transceivers. “With a technology portfolio that spans vertical-cavity surface-emitting lasers (VCSEL), electro-absorption modulated lasers (EML), directly modulated lasers (DML), and silicon photonics, we tailor our solutions to optimize performance, efficiency, and cost for each application.
6. Hubspot Inc (NYSE:HUBS)
Number of Hedge Fund Holders: 73
Hubspot Inc (NYSE:HUBS) is a software company that provides a customer platform designed to help businesses grow better through inbound marketing and customer relationship management (CRM). It also uses AI to power its customer platform, offering tools that automate tasks, generate content, and provide insights across marketing. Bernstein initiated coverage of the stock on March 19 with a Market Perform rating and a $693 price target.
According to analysts at the research firm, Hubspot Inc (NYSE:HUBS) is well positioned to benefit from its platform product system, which could appreciate AI-driven automation. Consequently, the analysts expect HubSpot revenue growth to surpass Wall Street expectations as it grows at a compound annual growth rate of 17%. In the long term, the focus will move toward profitability as the Customer Relationship Management (CRM) market develops and HubSpot’s revenue base grows.
5. Atlassian Corporation (NASDAQ:TEAM)
Number of Hedge Fund Holders: 75
Atlassian Corporation (NASDAQ:TEAM) is a software company that develops and provides collaboration tools, primarily for software development and project management. It also uses generative AI technology to create, summarize and extract information from content. Research firm Stephens initiated coverage of the stock on March 20 with an Equal Weight rating and a $255 price target.
According to the research firm, its competitive edge stems from its broad total addressable market, as its product offering offers significant reach beyond traditional DevOps. Atlassian Corporation (NASDAQ:TEAM) also boasts an extensive database of team organization and offers a sizable competitive advantage, especially in AI optimization. Its competitive position is further reinforced by the company’s established Forge ecosystem and partner network, which have been built over decades and offer significant growth prospects.
4. Accenture Plc. (NYSE:ACN)
Number of Hedge Fund Holders: 79
Accenture plc (NYSE:ACN) is an information technology services company that provides a wide range of services, including strategy, consulting, and operations, with a focus on digital, cloud, and security. It also offers data and artificial intelligence consulting services and solutions. On March 20, the company delivered better-than-expected second-quarter fiscal 2025 results that topped expectations.
Revenues in the quarter surged 5% to $16.7 billion as operating margin improved by 50 basis points to 13.5%. The company recorded generative AI bookings of $1.4 billion, which is a clear indication that clients are increasingly tapping its AI-powered solutions. The fact that the company signed Thirty-two clients with more than $100 million in quarterly bookings reflects trust and confidence in its AI-powered solutions.
“Our second quarter results demonstrate that we continue to deliver on our strategy to lead reinvention for our clients and return to strong growth in FY25, with broad-based growth across markets, industries, and the types of work our clients seek from us,” said CEO Julie Sweet.
3. Lam Research Corp (NASDAQ:LRCX)
Number of Hedge Fund Holders: 84
Lam Research Corporation (NASDAQ:LRCX) is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. It also uses AI to power its customer platform, offering tools that automate tasks, generate content, and provide insights across marketing, sales, and customer service. Oppenheimer initiated coverage of the stock on March 20 with an Outperform rating and a $95 price target.
The bullish rating underlines Lam Research Corporation’s growth opportunities amid growing demand for NAND solutions and artificial intelligence-related demand. The analysts believe the company is well positioned to benefit from increasing demand as NAND enters a large upgrade cycle and DRAM remains a bottleneck for AI computing. Consequently, the analysts expect the company’s earnings per share to double to between $6 and $7 by 2028.
2. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 85
Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform. It also provides a platform for building and running AI-augmented business intelligence solutions, enabling teams to analyze structured and unstructured data. On March 21, the company collaborated with FutureSkills Prime and the Ministry of Electronics and Information Technology to drive data and AI skills in India.
FutureSkills Prime, a digital skilling initiative by Nasscom, plans to enroll over 100,000 professional and student learners into Snowflake Inc. (NYSE:SNOW) free on-demand entry-level data and AI skills courses over the next two years. The ultimate goal is to equip them with the necessary data analysis and AI skills needed to succeed in the ever-evolving data landscape.
1. Workday Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders: 89
Workday Inc. (NASDAQ:WDAY) is a technology company that provides cloud-based applications for financial management, human resources, planning, and analytics, designed to help organizations manage their people, finances, and operations more effectively. It also offers AI-powered solutions for HR and finance, such as skills matching, intelligent process automation, and data analytics. On March 19, the company announced 350 product features and updates across its Workday platform.
The updates are designed to streamline business workflows and help customers navigate the future of work. The AI-powered Talent Rediscovery feature will empower recruiters and hiring teams to discover valuable talent and accelerate hiring while reducing costs.
“Workday’s spring 2025 release is directly shaped by feedback from our customers,” said David Somers, chief product officer of Workday. “We are delivering new features and solutions that simplify work, leverage AI to enhance and accelerate HR and finance processes, and empower our customers to focus on what matters most.”
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